Utility rates will be increasing for Ocala residents beginning next month.
During the Ocala City Council regular meeting on Tuesday, May 17, council members unanimously approved an increase to Ocala Electric Utility rates which will become effective on Wednesday, June 1.
The increased rate is due to rising fuel prices which have more than doubled in the past year. The Florida Municipal Power Agency (FMPA) has projected that its fuel costs could be $155 million over the budgeted amount for the fiscal year ending in 2022. According to FMPA, the City of Ocala’s share of this cost would be approximately $35 million.
After evaluating the rising fuel costs, city staff recommended increasing the Power Cost Adjustment (PCA) rate by $0.028 to $0.056 per kilowatt hour. The PCA rate is the mechanism by which the positive and negative fluctuations in the cost of power are passed to the customer.
This increased rate is intended to help minimize the impact of the rising fuel costs. According to city staff, a residential customer who uses 1,000 kilowatt hours a month will see an average increase of approximately $28 on their utility bill.
The Ocala City Council meets at 4 p.m. on the first and third Tuesday of every month at Ocala City Hall, which is located at 110 SE Watula Avenue.